Written answers

Thursday, 9 February 2023

Department of Employment Affairs and Social Protection

State Pensions

Photo of Joe FlahertyJoe Flaherty (Longford-Westmeath, Fianna Fail)
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59. To ask the Minister for Employment Affairs and Social Protection the steps that will be taken to address an anomaly whereby recipients of a non-contributory pension will not be able to rent out their empty home under the terms of fair deal scheme as the former family home will now be treated as an asset and contribute to their means assessment; and if she will make a statement on the matter. [6190/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Department of Social Protection provides income supports through a mixture of contributory payments (which are based on a person's social insurance record) and means-tested social assistance payments.

The State Pension (Non-contributory) is a means-tested payment for people aged 66 and over, habitually residing in the State, who do not qualify for a State Pension (Contributory), or who only qualify for a reduced rate contributory pension based on their social insurance record. For the purposes of the means-test, it is necessary at the outset for applicants to provide full details of any income(s), assets, savings and investments they hold (and the income(s)/assets of their dependent spouse, civil partner, co-habitant, if applicable).

Following the award of pension, the person receiving the pension (and, where relevant, their qualified adult dependant, personal representative or agent) must notify the Department in a timely manner of any change in their circumstances that may impact on their pension entitlement. Such changes would include notification of the commencement of rental of a property held by the pension recipient.

In general, the family home is not assessed as part of the means assessment for any of the Department’s schemes unless it is put to profitable use. An example of profitable use is where the family home is rented entirely while the applicant lives elsewhere.

Any changes to assessment of capital or income would have to be considered in an overall budgetary context.

Matters in relation to the Nursing Home Support Scheme (the Fair Deal scheme) are a matter for the Minister for Health.

I have committed to a broad review of means testing this year which will include the State Pension (Non-contributory) means test provisions.

I trust this clarifies for the deputy.

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